Indian startups' funding falls to $745 Mn in April: Entrackr report

Startup funding in India experienced a significant downturn in April, totaling $745 million— a sharp contrast to the $1.76 billion raised in January. This steep fall is primarily due to a decrease in large deals and a growing investor focus on public markets. Data also indicates that startup funding has remained relatively stagnant throughout the first four months of 2025.

According to data compiled by TheKredible, Indian startups raised a total of $745 million across 116 deals in April. Growth and late-stage funding accounted for $562 million from 23 deals, while early-stage funding contributed $186 million through 77 deals. Additionally, 16 rounds of funding remained undisclosed.

[M-o-M trend]

On a month-over-month basis, April saw a 34.65% drop in funding compared to March, which recorded $1.14 billion. Year-on-year, this also marks the lowest April funding in the past five years.

For M-o-M funding trend, visit TheKredible

[Top 10 growth-stage deals]

Among growth and late stage deals, Spinny, an e-commerce platform for used cars, secured $131 million in Series E, followed by Juspay with $60 million in Series D. Other notable deals included Rebel Foods ($25 million, Series G), Tonbo Imaging ($21 million, Series D), and Uniqus Consultech ($20 million, Series C). 

[Top 10 early-stage deals]

In April 2025, several early-stage startups secured substantial funding. Kult, a beauty tech platform, raised $20 million, while Aerem, focused on clean energy, raised $12 million. RapidClaims, a healthtech startup, garnered $11 million, and Xindus, a cross-border logistics company, secured $10 million. SigIQ.ai, an edtech startup, also raised $10 million. Other notable deals included Optimized Electrotech, which secured $6 million, and The Bear House, a men’s fashion brand, which raised $5.8 million.

For more information, visit TheKredible for more.

[Mergers and acquisitions]

In April 2025, the Indian startup ecosystem saw significant mergers and acquisitions, with Delhivery leading the charge by acquiring Ecom Express for $166 million, marking the largest deal. Findi acquired fintech company BANKIT for $18.7 million, while Accenture and Ampivo AI made strategic acquisitions in deeptech and AI, respectively, though deal sizes were undisclosed. In the edtech space, Arihant Academy acquired Carmel Classes for $1.2 million, and Creativefuel purchased MissMalini Entertainment for $0.69 million. Other notable deals included CARS24 acquiring Team-BHP, Jaipuria Group’s acquisition of ClearDekho, and NABARD purchasing 24*7 Moneyworks Consulting.

[City and Segment wise deals]

Bengaluru emerged as the top city in terms of startup funding in April, raising $268.94 million across 35 deals. Delhi-NCR followed with $253.44 million from 31 deals. Mumbai stood third with $122.96 million across 15 deals. Meanwhile, Pune and Chennai recorded 7 and 8 deals, raising $35.67 million and $29.84 million respectively. Overall, Bengaluru and Delhi-NCR together accounted for more than 70% of the total funding raised during the month.

Fintech led the segment-wise funding chart in April, raising $189.11 million across 9 deals. E-commerce followed with $64.88 million from 17 deals, while the foodtech sector secured $44.84 million through 13 transactions. Healthtech startups raised $32.82 million across 12 deals, and edtech companies brought in $21.66 million from 7 deals. Fintech alone accounted for over a quarter of the total funding during the month, highlighting continued investor interest in the financial services space.

[Series-wise deals]

In April, seed funding led in deal volume with 38 deals, followed by Series A, pre-Series A, and pre-seed with 24, 18, and 11 deals, respectively. Series A funding secured $240 million, accounting for 32% of the total funding raised. Check TheKredible for more details.

Check TheKredible for more information.

[Layoffs, key hires, and departures]

Zomato, now a public company, saw the highest layoff as it fired 600 employees in recent times. Gupshup and Zopper also sacked 200 and 100 employees respectively.

In April, the startup ecosystem experienced notable leadership shifts, with five senior executives—including CEOs, MDs, CTOs, co-founders, and a Group CFO—stepping down from their roles. Simultaneously, more than 30 key executive positions were filled, signaling a wave of transformation. For a detailed overview of these changes, click here.

[Trends]

VCs come to rescue: Startup funding remained flat in the last week of April 2025, but the $4.2 billion raised by India-focused VC firms such as A91 Partners, Accel, and Bessemer reflects growing investor confidence. Additionally, Peak XV is preparing for a major fundraise in the range of $1.2 to $1.4 billion, signaling a potential revival in funding momentum in the coming months.

Reduced IPO size: Startups like Urban Company and Ather Energy have recently scaled down their IPO sizes in response to market conditions and investor apprehensions. Urban Company, which initially aimed for a Rs 3,000 crore IPO, has reduced it to Rs 1,900 crore. Similarly, Ather Energy has trimmed its IPO size from Rs 3,100 crore to Rs 2,981 crore.

Edtech in the headlines: Despite sector headwinds, edtech startups are attempting a rebound. For context, Unacademy is aiming to achieve profitability in its core business soon. Meanwhile, PhysicsWallah, which is set to file its IPO papers shortly, is exploring acquisitions in the UPSC preparation space and may acquire established players like Drishti IAS and Sarrthi IAS.

Flat valuation: Several startups have recently raised funding rounds, but many did so at flat or reduced valuations. For example, used car platform Spinny raised $131 million at the same valuation as before, while Euler Motors also maintained its previous valuation in its Series D round. In contrast, content platform Pratilipi experienced a steep drop, with its valuation declining by over 60%.

[Conclusion]

Looking at the numbers, while the drop is apparent, what isn’t is the underlying trend where the market seems to be shifting towards a new wave of startups raising their series A or further rounds. These unicorns of tomorrow are certainly promising, even as older firms like Ather Energy graduate beyond startup status with their IPOs. While an immediate turnaround may not happen in May, there is little doubt that the situation continues to build towards a strong surge in H2 of 2025. Disruptions have been aplenty, none more so than those coming post the Trump Presidency, but every indication is that the market will ride it out and funding will follow. The underperformance of Mumbai for instance is just one indication of the higher sensitivity of fintechs at this moment to policy moves domestically and globally, besides the apparent pull back of interest in cleantech funding. Between startups that are wiser from the previous cycle, and new ones from both newbie as well as experienced founders, there is enough underlying action to indicate a funding spike soon.